Radio transmission apparatus with reception apparatus

Tender description

LUL and Citylink Telecommunications Limited (CTL) entered into a 20-year PFI contract on 19.11.1999 for a digital radio and transmission system (Connect system). For the background and defined terms, see Section VI.3 below. After this contract expires on 21.11.2019, the services currently delivered by CTL will need to continue to ensure the continued operation of the London Underground (LU) railway. LUL intends to enter into an interim contract with CTL's current contractor, Thales Transport and Security Limited (Thales) for an initial term expiring 4 years after expiry of the PFI Contract (21.11.2023) with an option for LUL to extend this interim contract for a further 3 years (with break options for LUL from 21.11.2022) (Interim Contract). As explained at II.2.4 and IV.1.1, for technical reasons and reasons connected with exclusive IP rights, there is currently no reasonable alternative to LUL engaging Thales under the Interim Contract. See Section VI for background. LUL’s immediate requirement on expiry of the PFI Contract is for the continued, uninterrupted provision of the radio and transmission services necessary for the safe operation of the LU railway and delivery of projects for major capital investment, e.g Northern Line extension. Having considered the current telecoms market, such as other TETRA solutions, 4G/LTE, 5G and FRMCS, LUL has concluded that there is currently no reasonable alternative but to extend LUL's use of the Connect system. Recognising the need to ensure the continued operation and safety of the LU railway, it is essential that some hardware and software in the Connect system is upgraded, such as the core radio system and the entire dispatcher control system. This will require extensive intrusive work on the Connect system to design, install, test, commission and deploy these elements without interrupting the LU railway services, all of which work needs to start this year and is anticipated to take 2 — 3 years to complete (i.e. will start before the end of the PFI Contract and will not complete until after expiry of that contract). Thales has the necessary knowledge and experience of the design and configuration of the existing system which is required to build, integrate and commission the upgraded system, and to carry out essential non-radio asset refresh work, without disrupting the railway operations. Thales also has the necessary relationship with Motorola and, as Motorola owns the exclusive IP rights in the Dimetra product, the necessary upgrade to the radio system can only be delivered with Motorola’s involvement (as a contractor to Thales). Consequently, LUL intends to enter into the Interim Contract with Thales for the provision of services related to the operation, maintenance and upgrades of the Connect system for an initial term expiring 4 years after expiry of the PFI Contract (21.11.2023) with an option at LUL’s discretion to extend for a further 3 years (with break options for LUL from 21.11.22). Under the Interim Contract, Thales will deliver the core radio upgrade including placing a sub-contract with Motorola for the upgrade and continued maintenance and support of the Dimetra product. The new Motorola sub-contract will enable LUL to move onto a fully supported service contract including continued support and software upgrades. The Interim Contract will also contain an option for LUL to order a further upgrade of the radio system in 2020/21 which will ensure that the Connect System is supported until at least mid-2025. When LUL concludes that there are alternative telecoms solutions reasonably available to LUL for use in the LU railway, it will commence a competitive procurement process for an alternative solution. Given the time required to run such process, design and build the alternative solution, then switch to that solution in a manner which ensures the uninterrupted, safe operation of the LU railway, LUL has concluded that that rollout is unlikely to be completed before 2026, so the TETRA system may well need to be sustained until then. The new Motorola sub-contract with Thales, which is novatable to LUL or a replacement supplier, will therefore provide for a 7 year term with an ability for LUL to require annual support extensions thereafter. In relation to Thales' services, LUL will at the earliest feasible opportunity either bring the services in-house or run a competitive procurement process for such services. LUL needs to be able to do this at a time and in a manner which does not put LU railway operations at risk whilst undertaking upgrade works to the Connect System, so the timing for doing so will in part depend on the timing of the commencement and completion of these upgrade works. The Interim Contract, with its extendable term and associated break options, allows LUL to terminate the Thales services (with the Motorola sub-contract novating to LUL or a replacement supplier) at any time from 21.11.2022